A Perfect Storm of Bullish Forces Is Brewing for Bitcoin – Rally to $170,000 Coming?

By Marco Piccolo

Bitcoin is facing a powerful convergence of bullish forces, from surging institutional interest to ETF accumulation outpacing supply, and a shifting geopolitical stance on crypto regulation. Together, these dynamics are laying the groundwork for a potentially transformative phase in Bitcoin’s trajectory.

Bernstein predicts corporations to allocate $330 billion to Bitcoin

A recent Bernstein report underscores an impending wave of corporate Bitcoin adoption. Publicly listed companies could collectively allocate up to $330 billion to Bitcoin over the next five years, with U.S.-based firms leading the charge. Strategy (formerly MicroStrategy), a key pioneer, has demonstrated the viability of a Bitcoin-centric treasury model. With over 555,000 BTC in reserves (more than 2.6% of the total supply) Strategy’s aggressive capital deployment plan now aims for $84 billion in BTC holdings, potentially expanding to $124 billion.

JUST IN: ALLIANCE BERNSTEIN NOW PROJECTING PUBLIC COMPANIES WILL BUY $330 BILLION IN #BITCOIN IN THE NEXT 4 YEARS

$124 BILLION FROM MSTR ALONE. LET’S GO 🚀 pic.twitter.com/EtmE0QpGgF

— The Bitcoin Historian (@pete_rizzo_) May 5, 2025

This model, however, is difficult to replicate, particularly for smaller firms due to risk constraints. Regulatory momentum, such as the SEC’s rollback of SAB 121, new stablecoin initiatives, and political support from figures like Donald Trump, could ease adoption hurdles and foster sovereign and institutional uptake. The U.S. government’s growing crypto cache (currently 198,000 BTC) and draft UK regulations hint at a broader international embrace of Bitcoin.

ETF inflows show persistent institutional demand

Despite short-term volatility, institutional money continues to flow heavily into crypto investment products, particularly Bitcoin ETPs. CoinShares reports that crypto ETPs garnered $2 billion in inflows last week alone, adding to a $5.5 billion total over three weeks. Notably, Bitcoin accounted for 98% of all year-to-date inflows, demonstrating dominant investor preference.

BlackRock’s IBIT ETF has been posting an impressive streak of net inflows. Image source: Farside Investors

BlackRock’s iShares led the charge, with $2.7 billion in inflows, significantly outpacing competitors like ARK Invest and Fidelity, which saw outflows. This suggests that Bitcoin’s largest institutional supporters are doubling down, further validating its position as a mainstream financial asset.

ETFs outpacing Bitcoin’s supply by nearly 6x

An even more striking development is the aggressive accumulation by U.S.-based spot Bitcoin ETFs, which bought 18,644 BTC last week, while only 3,150 BTC were mined in the same time period. This dramatic imbalance between supply and demand adds immense upward pressure on price, especially in a post Bitcoin halving environment.

BlackRock’s IBIT ETF alone absorbed $2.5 billion over five days and has now gone 17 consecutive trading days without an outflow. The broader market category for spot Bitcoin ETFs has ballooned to nearly $110 billion, despite barriers to entry on wealth platforms and restrictive investment guidelines for advisors.

Algorithmic prediction forecasts Bitcoin rally to $170,000

Currently, the algorithmic Bitcoin price prediction on CoinCodex is very bullish on BTC, forecasting that the largest crypto asset could reach over $170,000 this year, based on historical price data and current technical indicators. This peak, which is forecasted to occur towards the end of August, is expected to be followed by a prolonged price correction, in which Bitcoin would slip back towards the $100,000 level.

A synchronized bullish setup

Bitcoin’s bullish outlook is being shaped by several interlinked catalysts:

• Corporate adoption is accelerating, with Strategy leading a wave of treasury reallocations.
• Regulatory winds in the U.S. and UK are turning favorable.
• Institutional inflows, especially via ETFs, are maintaining momentum.
• ETF demand now dramatically exceeds mining supply, applying upward pressure on price.

These trends reflect a maturing market where structural supply-demand imbalances, growing legitimacy, and institutional infrastructure are converging to create an environment ripe for continued price appreciation.

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